China Law Update : China Business Law Lawyers & Attorneys : Sheppard Mullin Law Firm : Direct Investment, Dispute Resolution, Intellectual Property, Antitrust, Venture Capital

In order to encourage more multinational companies to set up regional headquarters in the capital, the Beijing Municipal Government recently issued general rules and implementing regulations (the "New Rules”) to establish detailed policies on the treatment of regional headquarters. The New Rules not only lower the application requirements for regional headquarters, but also offer generous subsidies and rewards, and other preferential policies. Some highlights include the following:

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Due to the global financial crisis and economic downturn, foreign companies are faced with more challenges and risks associated with international purchase transactions with Chinese suppliers. As a result, it is suggested that foreign companies take steps to reduce costs and control risks when purchasing commodities in China.

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